Which of the Following Is an Advantage of Carrying Out

question 26

Multiple Choice

Which of the following is an advantage of carrying out economic transactions through firms?

• A)The number of transactions carried out by a firm is fewer than that carried out in a market,thereby reducing the contracting cost.
• B)Firms lack knowledge about the products they produce and distribute in a market.
• C)Transactions made by or with a firm involve no opportunity cost.
• D)The number of transactions carried out by a firm is more than that carried out in a market,thereby reducing the contracting cost.

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Definitions:

Expenses

Costs incurred by a business in the process of earning revenue.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, often seen as the net worth or book value of the company to the owners.

Consulting Revenues

Income generated from providing expert advisory services to clients.

Additional Investment

Funds that are injected into a business by its owners or shareholders beyond the initial investment, to support operations or growth.